Sensex logs best gain in month, up 283 pts on rupee optimism

The benchmark S&P BSE Sensex today rose by 283 points, its best daily gain in a month, on optimism about the rupee after the government took more steps to curb the burgeoning current account deficit.
Realty, bank and auto stocks led the gains amid strong global cues coupled with capital inflows.
The 30-share Sensex resumed lower and dipped to 18,864.81, triggered by weak June industrial output data released after trading hours yesterday. Helped by value-buying, the index recovered to settle at 19,229.84, a gain of 282.86 points, or 1.49 per cent.
On July 12, the Sensex had risen by 282.41 points.

The 50-share Nifty on the National Stock Exchange firmed up by 86.90 points, or 1.55 per cent, to a one-week high of 5,699.30. The SX40 index on the MCX-SX added 149.2 points, or 1.33 per cent, at 11,408.14.
The Index of Industrial Production for June contracted 2.2 per cent, while retail inflation was slightly lower at 9.64 per cent in July, from 9.87 in the previous month.

"This economic slowdown, along with easing inflation, is triggering hopes for rate cuts in near term. Rate-sensitive stocks were surging high in today's trade," said Rakesh Goyal, senior vice president at Bonanza Portfolio Ltd.

Finance Minister P Chidambaram yesterday announced a slew of measures, including easier overseas borrowing norms, to fetch an additional USD 11 billion and check the CAD. As part of those steps, the government today increased import duty on gold, silver and platinum to 10 per cent.
The rupee recovered to 61.17 against the dollar, compared with yesterday's close of 61.27.
Of the 13 sectoral indices, 11 closed with gains. Consumer durables and metal indices fell.